Forex Trading Robot Scams – Best ways to avoid in 2021

Forex Trading Robot Scams

Forex, or the foreign exchange market where institutions and investors trade currencies, is the largest financial market globally. Close to $6.56 trillion trades daily on the forex markets, per a very authoritative source. Whereas forex trading is legal,  the industry is genuinely alive(as in, alive with rats and vermin). There is always a low key plague raging that takes away from all the positive things that good brokers and traders can achieve. The oft-repeated warning of ‘due diligence is not out of place in a trading world that is afflicted by perpetual robot scams. Therefore, Forex Trading Robot Scams – How to Stay Away Pitfalls

Is, unsurprisingly, a topic that much exercises FX traders today. 

Current FX trading keeps on developing and calling for advanced technological solutions. All the more reason why traders frequently use FX trading to a better quality of work and come up with better outcomes. Being a fx trader calls for plenty of talent, training, time, and luck. Even experienced and professional traders like to include trading robots to have extra help. When looking for the most suitable Forex trading robot for you, think over the tips and information covered in the article. 

Forex Robots: Merits  and Demerits 

Prior to deciding upon the purchase and utilisation of a Forex robot, you ought to consider if you would gain from using such a program. Whereas these trading robots are undoubtedly very advantageous for several traders, it is crucial to employ context when pondering whether you ought to purchase one. It might just not be as good for you. There are a number of pros, but the cons kind of take away the sheen from automated trading. 

The pros of Forex trading robot

  • Trading without end. No one can trade all day and all night, given that it’s physically not possible.  The working day, for traders, is not that much removed from other run-of-the-mill jobs. However, trading robots run without pausing to rest, eat, or be in the company of friends and family. 
  • Effective removal of the human aspect. A computer program lacks emotions, only behaving as per the program. Folk may frequently be at a loss, emotions tangling with their trading. Regardless of if it is greed or fear, any pause could cost you a lucrative trade. Forex robots just do their work, unhindered by feeling. 
  • Forex trading robots were made for complex work. However, a robot’s main strength could be said to be multitasking. 
  • Standard backtesting. These robots can be hard to replace in the event of trading new trading strategies against existing data. 

Cons of forex trading robot

  • Forex Trading robots were intended to aid traders. However, the entire subject of Forex trading robot scams, and the pitfalls that accompany that kind of threat, from the cons of aids gone wrong. 
  • Forex Trading robots can be demonstrated to be less than hacker poof. 
  • Expert advisors sometimes do not deliver as promised. 
  • Expert advisor results sometimes are manipulated. 

How to try and make your EAs hacker-proof?

This is both about productive EAs and EAs that remain safe from Intellectual Property theft. 

Elementary protection

The most elementary protection that makes your EA hacker-proof is inducing a script into the code that allows only approved accounts to be able to operate the EA. Trying to use this EA on another account would be a failure. All accounts are to be coded into the script to permit overall security. 

Intermediate protection 

The addition of expiration times to the EAs, or the addition of a Dynamic Linked Library (DLL) file, renders intermediate protection. A file extension containing data, code, or a resource in several combinations, a DLL file shields the EA from decompilation. 

Advanced protection 

Ths option is made up of creating a Master-Slave EA file, choosing to add DLL protection and php authentication. 

Processes involved 

The Master EA is devised and put on a secure virtual private server. The Master EA has the source code. The Slave EA is coded as well, sans source code, made to point toward the Master EA on the server. The client gets the Slave EA. signals are sent from the Master EA to the Slave EA for trade execution. 

To preempt decompilers trying to harm the Master EA , DLL protection may be rendered the latter. However, it has to be borne in mind that some buyers may be hackers with the capacity to trace the server where the Master EA is hosted from the Slave EA.

A PHP authentication system is found where clients interested in purchasing the Slave EA  are put into a MySQL database from where users may be deleted/added. Additionally, the user’s particular IP address may be pinned down thanks to one more protection level. Courtesy this authorisation, there’s no way a hacker may access the Master EA source code. So naturally, usage outside of the authorised IP address is blocked. 

Above mentioned protection methods secure your EAs. This is of interest not only to developers but Forex traders as well. 

Forex Trading Robot Scams: sidestepping the Pitfalls 

Not only is the Forex market among the largest, but it is among the most liquid as well. Novice traders with barrel basic knowledge of FX trading sometimes get complacent, thinking it would not be hard to make heaps of money without elaborate organisation. These not infrequently fall prey to shysters. 

The mighty fall the hardest. That much is also true of Fore investors and traders. The amount of investment is directly proportional to the possibility of winning/losing. Rewards and losses both tend to be substantial.

Caution and circumspection while planning to buy your Forex Expert Advisor

  • Suppose an EA is successful – were it a real cash machine, why would the seller be so much bent upon putting it on the market? The more the number of investors pursuing a particular strategy, the higher the likelihood that the said strategy will fail to work in future. 
  • A seller ought to be able to prove his strategy with a powerful signal. The latter ought to be profitable and should be not less than a year old.   
  • Exercise caution if the seller has only a demo signal. While the EA may work with a demo signal,  it may be unresponsive to an actual signal. In addition, demo signals frequently neglect practical factors like commission/spread and slippage. 
  • You are best advised to keep away from Expert Advisors, who found their strategy upon Grid, Martingale, Hedging, and other risky money management applications.
  • Be wary of sellers using mind tricks to sell their Expert Advisor, like artificial scarcity – via price advantage, added value, quantity.
  • Be cautious if you buy software on websites that are designed just for the product. Why does he not sell his ware on the official MQL5 market? While on  MQL5.com, you can read the comments and reviews from sundry buyers, but this is not a done deal on the seller’s website. You will have only yourself to blame for the times you cannot get hold of a trial version for backtesting purposes. 
  • Frequently sellers offer real signals, for instance on myfxbook.com. Bear in mind that obtaining a signal with good outcomes that operate with success for months, even years, is not too hard to achieve. There must just be a lot of trading accounts with different settings. Were even one account to flourish, the seller would tout his EA as being highly successful. Forex trading robot scams thus lose very little in terms of their account investing but feel free to charge very high prices from buyers of their EA. 
  • Manipulated results are not uncommon. For example, a successful sample trade may be touted as successful, even though it crashed eventually.
  • Signals with a few months’ of success touted for them give little confidence since a handful of months cannot stand for a long term success guarantee. 
  • If the new signals are all crashing after a certain time, keep away from this buyer. 
  • In case the vendor shows backtest outcomes, you ought to check the tick data quality the vendor employed to create the backtests. The results are certainly not usable if the modelling quality is not 99%. Incorrectly configured parameters can do results in. 
  • While assessing EAs, you tend to forget that past performance is no guarantee of future success. Besides, you also play into the developer’s little manipulative hands. Thru overfitting, the developer adjusts EA parameters during the backrest for a particular time range until the results appear great. With another time range, the results might be poor. 
  • A good rule of thumb also is to keep away from seller-developers who have a large number of EAs to sell. Given that the success rate is pretty rare among EAs, how can any honest developer expect buyers to believe that it has a whole stable of winners? The seller is focused on selling for selling’s sake. 

Conclusion

Forex Trading Robot Scams: Sidestepping the Pitfalls becomes a chief concern with all FX traders. Especially aspiring traders need to be aware that success in FOREX trading robot is works upon many factors. There are no shortcuts in FX trading. Forex trading Robot scams not only expect consumers to be complacent but without good common sense as well. It is up to you not to be taken in.

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